Euro zone inflation smashes through ECB target to 2.5% in March as energy costs soar

Inflation in the euro zone jumped to 2.5% in March, according to the latest preliminary figures from Eurostat on Tuesday.

Euro zone inflation was up from 1.9% in February and jumped well ahead of the European Central Bank’s 2% target.

The increase largely reflects a sharp jump in energy prices since the U.S. and Israel launched their military operation against Iran at the end of February. Economists polled by Reuters had expected a reading of 2.6%.

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